cell centric manufacturing business consultancy ”understanding & identifying waste is the...

Cell CentricManufacturing Business Consultancy

”Understanding & identifying waste is the first step to reducing or eliminating waste”

This is the bedrock of Best Practice Manufacturing

The Concept of Waste

Manufacturing Business Consultancy Cell Centric

Cell Centric - Accelerated Cell Centric 2+2 Day Programme - Day 1 of 4

Two Elements to Every Job

Non-Value Adding

Valueless Obvious Effort Waste

Costs TimeCosts Money

Adds No Value

WASTE

Where do we draw the line between Waste & Non-waste elements?

Value Adding

Valuable Effort

Costs TimeCosts MoneyAdds Value

VALUABLE



“Only an activity that physically changes the shape or character of a product or assembly can add value”

Therefore: Any activity that does not change the product or assembly is waste

Rough Guide to Waste

This is a more objective judgementThis is a more objective judgement

TOYOTA defines Waste as:"anything other than the minimum amount of equipment, materials,parts, and working time absolutely essential to production."

The Rough Guide to Waste is:

Difficult to get a team to agree what is absolutely essential!Difficult to get a team to agree what is absolutely essential!



All these activities require effort, cost time, cost money but not all add value.Which ones are waste?

Waste or Non-Waste ?

Waste(Y/N)

Waste(Y/N)

Machining cut ….. Assembly …..

Plating ….. Mixing …..

Heat Treating ….. Molding …..

Transfer / Moving ….. Counting …..



Effort frequently does not result in changing the shape or character of a product or assembly

eg. moving, counting, expediting, setups, inspecting, etc

Changing shape or character of a product or assemblydoes not necessarily add value

eg. machining, plating, assembly, painting, heat treating, etc

The more waste you can see, the more you can eliminate If you accept activities as waste, you may devise methods to

eliminate them. YOU choose whether to tolerate the waste!

Definition of Waste - Conclusions



This is objective, accurate and challenging- giving a strong basis for agreement

This is objective, accurate and challenging- giving a strong basis for agreement

Every activity should be considered as waste, unless it:

Meets an explicit customer requirement

Cannot be shown to be performed more economically

If the activity does not meet a known customer requirement or could be performed more economically, why continue in the same manner?If the activity does not meet a known customer requirement or could be performed more economically, why continue in the same manner?

Definition of What Is Not Waste



TheSeven

Wastes

Energy Untapped human resources By-products

Other

CommonWastes

Types of Waste

Motion Transportation Waiting Time Overproduction Inventory Processing Time Defects



"MOVE does not equal WORK”

Examples and causes include: Rearranging temporary storage areas Moving and searching for anything (tools, material etc.) Functional organisation (similar processes all in one area) Engineering all parts onto one "supermachine” - Project “Heathrow” Counting parts Double handling:

– into stores, from stores– large containers to small containers (& back)

Bending down to pick up parts

“Don't confuse motion with progress or you'll become a busy fool” John Wolfson

Motion & Transport



Opportunity for damage in handling and movement

Poor space utilisation poor layout with large distances between stages large proportion of floorspace used for gangways and storage areas

Low productivity giving high labour cost

Large batches waiting for transport large inventories, long leadtimes, poor responsiveness

High cost and low service levels

Motion and Transport give:

Motion & Transport



Three causes of Waiting Time

No Material

scrapbreakdown

poor schedulepoor supplier

No Machine

breakdownsetups

large batchno tool, jig, fixture,gauge

No Man

skill shortageabsenteeism

watching anothermachine

Waiting Time, Overproduction & Inventory



The least of all the wastes?

No! The worst of all as it helps hide other forms of waste

The least of all the wastes?

No! The worst of all as it helps hide other forms of waste

Two causes ofOverproduction

Too Muchmore than is needed

long setupsEOQ

design of process

Too Earlyearlier than is needed

lack of machine capacitysubcon operations

long in-process delays and leadtimes




Four causes of Inventory

Unbalanced Material Flow

synchronisationbetween stages

level quantities in andbetween stages

LotDelays

transfer batchesgreater than one

CushionStorage

breakdowns

rejects

poor suppliersor buying

SafetyStorage

increase feelingof security




MachineCapacity

SkillsShortage

TransportDelays

Breakdowns

Rejects

SupplierDeliveries

LongSet-ups

Scheduling

Level of Inventory

Overproduction and Inventory hide causes of Waste(otherwise, why would we hold them?)

Reducing Waiting Time, Overproduction & Inventory



Solve problems to reduce the level of inventory in the manufacturing system and reduce the level of inventory in the system to prevent problems

returning!

Reducing Waiting Time, Overproduction & Inventory

MachineCapacity

SkillsShortage

TransportDelays

Breakdowns

Rejects

SupplierDeliveries

LongSet-ups

Scheduling

Level of Inventory



Lots of parts not wanted, but available Lots of parts wanted, but not available Poor man, machine and material “utilisation” Large inventories, long lead-times, poor responsiveness Difficult to identify sources of quality problems Poor layout, lots of motion and transport Material handling, indirect, overheads, systems

High cost & Low service levels

Waiting Time, Overproduction and Inventory give:




Processing Time

Examples & potential causes include:

– Low operation rates due to tool, jig, or machine condition / spec

– Non-standardised elements of work, insufficient process monitoring, or lack of operator skill / knowledge

– Roughing cuts due to oversized material

– Deburring due to poor tool maintenance or product design• additional operations due to product design or production

engineering

– Stopping machine to clear minor stoppage



High cost and low business performance

Waste of Processing Time gives:

Processing Time

Lower direct labour productivity Higher labour cost Higher machine cost Higher product cost

Reduced capacity Wasted business opportunity - “the glass ceiling” effect Lower return on capital employed



Low direct & indirect labour productivity Machine capacity wasted producing defects Ineffective material usage Inventory kept to decouple processes Equipment & space required to keep inventory Production control system made more complex Delivery reliability reduced

High cost and low business performance

Waste of Defects gives:

Defects



Scrap,Concession

rework

loopscustomer

complaints

reducedcapacity

longerleadtimes

rescheduling increased

inventories

delivery failures

(Harrison, 1992)

The Scrap iceberg

The impact of defectsis much greater than

the level of scrap

(multiply by ten)

Defects



Other Common Wastes

Energy

Light

Heat

Power

Untapped HumanResources

Engineering and commercialcapabilities not directed

to solve problems

By-Products

Scrap materials

Recycling - oil,coolant, etc

Other Common Wastes



Motion: Total number of footsteps required to complete a task

Machine: Overall Equipment Effectiveness (OEE %)

Transport: Total distance traveled during manufacture

Waiting Time: Proportion of time spent machine minding

Throughput Efficiency (b): Sum of processing time vs leadtime

Materials: Weight of material in vs weight of materials out

Other Example Measures of Waste



Western JIT Production Systems

ZIPS, CFM, MAN, KMM, etc

Japanese JIT Production Systems

Kawasaki Production SystemCanon Production System

Toyota Production System

World Class Manufacturing

Lean Production

Agile Manufacturing

OhnoProductionSystem

1950

1962

1980

's

1973

1986

1990

1992

Just In Time

WCM

Lean

Agile

95% Waste ?

1 Japanese = 2 Americans

20-fold improvement

1 Japanese = 2 Americans

20-fold improvement

1 American = 10 Japanese

Caused by Waste

1 American = 10 Japanese

Caused by Waste



Conclusions

• Waste is everywhere in manufacturing

• The elimination of waste is a massive opportunity

• Best Practice Manufacturing reduces waste using a diverse range of practical techniques

• Waste is everywhere in manufacturing

• The elimination of waste is a massive opportunity

• Best Practice Manufacturing reduces waste using a diverse range of practical techniques

cell centric manufacturing business consultancy ”understanding & identifying waste is the...

Documents

value waste

day programme day

waste nonwaste elements

definition of waste

concept of waste slide

common wastes types

value valuable slide

cost time